Bitcoin rushes to $11K while the market 'buries' altcoins

Bitcoin once again jumped off after the correction and hit the ceiling at around $10,700, but on Friday morning it shows signs of an attempt to test a new resistance level. Bitcoins are being redeemed over and over again after the declines, but this won't last forever. In case the BTC faces serious difficulties above the resistance level $10,800, we can expect the strengthening of bearish sentiment - with lower lows and growth of trading volumes.

Nevertheless, if we consider the historical perspective, September is more inclined to show a side trend with a strengthening of bullish mood closer to October. Taking into account the fact that we are not in the bear market, and at the end of September is scheduled to launch the delivery futures from Bakkt, it is possible to assume that the market will get an impulse from institutional money.

Other positive statistics from CoinMetrics indicates that the number of Bitcoin addresses stored from 10 BTC (about $105K) has reached 1% of all wallets or 157K addresses. A very small number of Bitcoin holders use it for making payments. Many current investors bought Bitcoin on minimums or near them that is confirmed by the absence of large-scale sales within the limits of numerous corrections as owners of Bitcoins anyway are in a huge plus even if the market falls.

The mining difficulty of Bitcoin continues to grow. It means that new ASIC-devices are launched, supporting the bullish mood in the market. It is believed that the indicator of the hash rate in the Bitcoin network has a background impact on the price dynamics. And now we see a clear "north" direction.

The dominance index chose the same direction, as it grew to almost 71% this week. Thus, the index grew by more than 3% over the month. The trend of selling alternative cryptocurrencies in favor of Bitcoin remains, but market participants understand that Bitcoin itself has been "buried" many times, and now the same is happening with altcoins. Perhaps they have lost their charm of innovativeness but they still have the same speculative properties that large investors will pay attention to at some point.

VanEck, which is still waiting to consider its application for the launch of Bitcoin-ETF, said this week that it will launch a "limited Bitcoin-ETF". According to market participants, it is very similar to the Grayscale product, which has been on the market for many years. In case of the popularity of the Bakkt product and emergence of an impulse for growth of Bitcoin, we will see the activation of other market participants in the near future, which in total should create a very significant impulse for growth of Bitcoin by the end of this year.

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Editors’ Picks

Bitcoin is trading between the Simple Moving Averages support and resistance. The 100 SMA on the four-hour chart is offering support at $10,149 while on the upside the 50 SMA will limit movement at $10,364.

Speaking in the interview with CNN, Garlinghouse confessed that Ripple was the largest owner of XRP tokens, and thus the most interested party in the success of the project. Meanwhile, selling XRP onto the market does not qualify as the best success strategy.

The cryptocurrency market situation has barely changed in recent 24 hours. Bitcoin and the majority of altcoins out of top-20 managed to recover during late Thursday hours; however, no major breakthroughs happened.

IOTA has defied the broad-based bear pressure to post a subtle 1.3% increase in value on the day. Prior to the impressive correction on Monday, IOTA was consolidating above the short-term support at $0.2350. The initial recovery from the recent low at $0.2268 failed to break the resistance $0.25.

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